What would you say if someone approached you and asked you, “What if I could show you how to get out of debt in 9 years or less, including your mortgage, without spending any additional money than you are spending right now?”
That’s what I said. How?
After seeing how this is possible I decided to do a bit more research into this issue of debt.
But first, what is considered debt? According to Nolo,
“Consumer debt is a debt incurred by an individual for primarily personal, family, or household purposes. Anything else is non-consumer debt. A good rule of thumb is to look at what you used the money for rather than where you got it or the name of the transaction type. For instance, if you used the money to pay a personal, family or household expense, or to purchase personal, family or household goods, it’s probably a consumer debt.”
Well that seems helpful. Using this as a guideline let’s see what kind of consumer debts are most common.
- Student Loans
- Credit cards
- Car loans
- Medical Bills
When researching this area there seems to be a crisis in each of these categories. I will be using the website www.debt.org as a reference.
Student Loan Debt
With the social pressure and requirement of a college degree to apply for most entry-level jobs today, we have seen families go into debt trying to afford good education for their children who then becomes a “productive” tax payer in today’s workforce.
The pressure has become so great that many private schools are basing their acceptance of students into high schools based on the possibility of them keeping up with the curriculum to be accepted into colleges and universities. In fact, there are software used to show what the success rate of a student’s acceptance into a college or university based on previous students success of acceptance in that same high school.
According to debt.org,
“Paying for college has turned into a long-term burden for millions of Americans. The total bill as of November 2018 was $1.56 trillion, which was more than double what it was a decade earlier. About 66% of students who earned four-year degrees in 2017 took out loans and owed $28,500 when they got their caps and gowns. Of the 42.2 million people with federal student loans, 2.7 million owed at least $100,000. The Fed’s Survey of Consumer Finances shows that 22.4% of families had student loan debt in 2016. Only 8.9% were paying such loans in 1989. The average family owed $5,400 in 1989. That ballooned to $34,200 in 2016. Even adjusted for inflation, that’s a three-fold increase. The average monthly payment was $339 a month.”
Are you affected by this crisis? Do you have student loan debt? Would you like to know how to pay it down sooner?
Do you have other debt too?